Healthcare innovation has been a mixed bag, and for the investor, embarrassingly faddish
In this review of ETFs, profiles are more diverse than their names suggest, with some funds putting emphasis on new fields of medical expertise centered on genomics and often still at the research stage, others on the more broadly defined biotechnology segment, and finally some on applied technology (IT) as new up-and-coming investor darling
Under the guise of 'diversification', there appears to be uncertainty about the most promising trends and realistic assessment of revenue streams derived from discoveries (often still at clinical stage)
One arguably significant ETF - in terms of assets under management (AUM) - set aside in this selection is ARK Invest Genomic Revolution because of the fund’s extreme volatility, reflecting its exclusive exposure to 21st century ambitions (or dreams)
Successful investment strategies in the health sector may temper the optimism of medical breakthroughs and of transformative IT applications with hard questions about the financial value added, as our forthcoming notes will discuss